Japan's crypto tax reform faces potential delay to 2028

A leading Japanese financial executive has criticized the slow progress on cryptocurrency tax reforms, warning of a possible one-year delay. Traders, currently facing up to 55% taxes on profits, had anticipated changes starting in January 2027. The delay could hinder Japan's web3 development compared to global peers.

Tomoya Asakura, CEO of SBI Global Asset Management, voiced frustration over the pace of Japan's cryptocurrency tax overhaul in a post on X. Citing reports from CoinPost, he noted a potential postponement of the reforms by one year, pushing implementation to 2028 rather than the expected January 2027. This shift stems from an unnamed political insider, though details remain unconfirmed.

"This is an extremely slow schedule," Asakura wrote. He added that Japan risks falling behind not only the United States but also regions in Asia and the Middle East in crypto development. Asakura's firm, part of the major SBI financial group and a Ripple partner, recently outlined plans for a yen-denominated stablecoin launch in the first half of 2026.

Under current rules, Japanese crypto traders treat gains as miscellaneous income, incurring taxes up to 55% without the ability to offset losses against profits or carry them forward—unlike stock traders. The Financial Services Agency (FSA) aims to address this by reclassifying cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act. This would impose a flat 20% capital gains tax and streamline reporting through compliant exchange systems.

The National Diet is slated to approve the necessary amendments in early 2026, with promulgation typically requiring a year. However, Asakura cautioned: "As a result of this, efforts to introduce web3 and next-generation finance may experience further delay." The changes seek to align crypto taxation with forex and equities, fostering a more competitive environment for investors.

Related Articles

SBI Securities and Rakuten Securities are developing crypto investment trusts in-house. Nomura, Daiwa and SMBC plan to follow suit as Japan prepares rules allowing crypto-holding funds by 2028.

Reported by AI

South Korea's National Tax Service has started preparations to build a tracking system for taxing cryptocurrency investment gains, aligning with the government's expansionary fiscal policy and revenue needs. The system is being developed ahead of tax collection on virtual asset profits beginning January next year. The 3 billion won project, now open for bids, will use AI to analyze transaction data.

SBI Group intends to launch Bitcoin and Ethereum ETFs in Japan following expected regulatory changes. The initiative targets the country's vast household savings pool through familiar brokerage and tax-advantaged channels.

Reported by AI

Russia's central bank is considering a plan to let banks and brokerage firms operate cryptocurrency exchanges using a simplified notification process tied to their existing licenses. Governor Elvira Nabiullina presented the proposal as a way to integrate digital assets into the country's financial infrastructure while managing risks. The move is part of broader efforts to establish a regulatory framework for cryptocurrencies, effective from July 2026.

This website uses cookies

We use cookies for analytics to improve our site. Read our privacy policy for more information.
Decline